IL Gas Tax Hike Coming In July: Here's How Much More You'll Pay

Drivers in Illinois can expect to pay even more at the pump beginning in July, with an expected increase coming to the state motor fuel tax.

The state tax will rise to 49.6 cents per gallon because of the automatic annual inflation increase built into the 2019 “Rebuild Illinois” infrastructure program signed by Gov. J.B. Pritzker, according to Illinoispolicy.org.

Subscribe

In July 2025, the tax was 48.3 cents per gallon; the newest increase is automatically built into the program.

It's a pain point for Illinoisans, who are seeing an average gas price of $4.97 per gallon as of May 11, up from about $3.40 a year ago, according to the AAA. The national average is $4.52 per gallon.

The new rate will be in effect through June 30, 2027. Rates are as follows, per the Illinois Department of Revenue:

The Motor Fuel Tax Law imposes a tax per gallon on all motor fuel (i.e., diesel fuel, gasoline, gasohol, liquefied petroleum gas (LPG, commonly known as "propane"), compressed natural gas (CNG), and liquefied natural gas (LNG)) used in motor vehicles operating on Illinois public highways and in recreational type watercraft operating on Illinois waters.

Gov. Pritzker has pointed the blame at President Donald Trump, alleging that international conflicts and economic policies under Trump's watch are driving up fuel costs.

States like Indiana and Kentucky, though, have frozen their states' gas tax temporarily to give drivers a break, the Chicago Tribune reports.

Trump has also reportedly alluded to a drop in the federal gas tax, the Tribune reports.

The July 1 increase means Illinoisans will continue to pay among the most in the country for gas.

IllinoisPolicy.org reports that when state and local taxes are factored in, many Illinois drivers pay more than 85 cents per gallon in taxes at the pump.

California and Michigan join Illinois as among the highest total gas taxes in the country, IllinoisPolicy.org reports.